alleryStart learning →A plant with expansion capacity costs Rs 12 crore against Rs 10 crore for one without. The option premium is
ARs 2 crore
BRs 12 crore
CRs 10 crore
DRs 22 crore
Answer & Solution
Correct answer: A. Rs 2 crore
The extra Rs 2 crore spent for the possibility of expansion is the premium paid for the option.
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